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AT&T to Remain Sole US iPhone Carrier into 2010?

USA Today has published an article highlighting AT&T chairman and CEO Randall Stephenson's contributions to the Apple-AT&T relationship. Of particular note, the article cites unnamed sources who claim that in exchange for offering Apple subsidies of up to $300 per iPhone, AT&T has been awarded an extra year of iPhone exclusivity in the United States, extending into 2010.

In exchange for its payout, AT&T got a year extension, into 2010, on its exclusive distribution deal with Apple, people familiar with the matter say. Sources asked to not be named because the terms are confidential.

Under the original iPhone contract, Apple had the right to offer the device to other carriers beginning in 2009. If Apple exercised that clause, AT&T would have lost one of its biggest points of leverage with customers exclusive access to the iPhone. Nailing the extension "is a very big deal," Entner says.

Stephenson declined to discuss the contract, saying only that he is "very happy" with the arrangement.

USA Today had previously claimed that AT&T's original exclusivity agreement with Apple was to run for five years (into 2012), although other sources had reported that the agreement would extend only until 2009.

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50 months ago
USA Today article about ATT CEO's iPhone deal

Summary: Originally two years, ending in 2009. Extended one more year, to 2010, because of the current subsidy.
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50 months ago
Damn,

There goes my hopes of Verizon having it anytime soon.

Not that it maters since I'm in a 2 year contract with AT&T now anyway :P
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50 months ago

Damn,

There goes my hopes of Verizon having it anytime soon.

Not that it maters since I'm in a 2 year contract with AT&T now anyway :P


I really doubt Verizon will ever have the iPhone, unless Verizon changes their network to GSM. I really don't see Apple making a CDMA compatible phone ever, it's not the future nor world wide in use.
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50 months ago
I am really happy regarding the news! I love the fact that since AT&T is the exclusive carrier in the U.S., less people will have the chance of acquiring the phone. Maybe I am being a little selfish, but I would rather another "Razr" episode did not occur; people who can afford a product paying $800 when it first comes out (because of exclusivity), and then it becoming available for free with a two-year contract. Talk about unfair...
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50 months ago

I am really happy regarding the news! I love the fact that since AT&T is the exclusive carrier in the U.S., less people will have the chance of acquiring the phone. Maybe I am being a little selfish, but I would rather another "Razr" episode did not occur; people who can afford a product paying $800 when it first comes out (because of exclusivity), and then it becoming available for free with a two-year contract. Talk about unfair...



Have you seen the lines all over the US for this thing? I think the iphone lost its exclusivity on July 11th.
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50 months ago

In exchange for its payout, AT&T got a year extension, into 2010, on its exclusive distribution deal with Apple, people familiar with the matter say. Sources asked to not be named because the terms are confidential.

Under the original iPhone contract, Apple had the right to offer the device to other carriers beginning in 2009. If Apple exercised that clause, AT&T would have lost one of its biggest points of leverage with customers — exclusive access to the iPhone. Nailing the extension "is a very big deal," Entner says.

Stephenson declined to discuss the contract, saying only that he is "very happy" with the arrangement.

Pertinent part
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50 months ago

I really doubt Verizon will ever have the iPhone, unless Verizon changes their network to GSM. I really don't see Apple making a CDMA compatible phone ever, it's not the future nor world wide in use.


I have mixed thoughts on that. If the iPhone indeed launches in Korea using GSM, then yes, I think the chances of a CDMA iPhone are pretty nill. If the market for the CDMA iPhone is both the US and Korea, the US CDMA market is certainly quite large, and as I understand it, the Korean one still is also.
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50 months ago
Verizons 4G will be GSM.
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50 months ago

I have mixed thoughts on that. If the iPhone indeed launches in Korea using GSM, then yes, I think the chances of a CDMA iPhone are pretty nill. If the market for the CDMA iPhone is both the US and Korea, the US CDMA market is certainly quite large, and as I understand it, the Korean one still is also.


VOIP and LTE anyone (just a personal guess)? VZW is suppose to have this deployed on their new 700mhz in the 2010/2011 area....hmmm. VZW iPhone could most definitely happen. If carriers start deploying calls VOIP instead of the cellular network when LTE launches, we could see that happen and things would get VERY interesting. There would be no reason not too...esp with the bandwidth that LTE brings to the table. Just a matter if everyone does VOIP with LTE.

AT&T has already said they are going LTE with all of the other GSM carriers so you know Apple will develop an iPhone with LTE based 4G.

If Apple launches a new iPhone next year and the contract does not extend another year...then we can really start speculating :)
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50 months ago

I really doubt Verizon will ever have the iPhone, unless Verizon changes their network to GSM. I really don't see Apple making a CDMA compatible phone ever, it's not the future nor world wide in use.


Apple has already made a new phone with a different radio. Many phone makers make more than one radio model. It's not that hard to imagine, unless you think Apple is exceptionally incompetent.

But I agree it won't happen with current standards.

When Verizon and ATT move to 4G LTE, then we could see a new iPhone that could work across most major carriers.
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